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- Title
Basic Endogenous Economic Growth Model (Ak Model) - Evidence For Danube Region Of Bulgaria.
- Authors
ASSENOVA, Kamelia
- Abstract
The economic development of Bulgaria characterizes with regional imbalances. They come from historically shaped differences in the development of social processes (social, economic, governance) in the regions. The imbalances are formed about GDP per capita, the age and educational structure of the population, the level of employment (unemployment), the income per capita and distribution of investments. Due to it, the main objective of regional economic policy is overcoming of the imbalances. The current development need to ensure equal good living conditions in all parts of the country. The main theory for economic development nowadays is the research of Solow. According his theory, main factors for economic growth are: capital(K), labour force (L) and technology. The simplest version of this endogenous growth model is AK model. According this model, the production function is assumed to be linear with single factor of growth - capital stock or investments. The model assumes that the population is constant. The Danube region, object of this research, includes 11 districts in the North Bulgaria. They are part of 3 economic regions. These districts are lower developed; some of them are poorest regions in EU. The GDP of Danube region is 16.09% of GDP of Bulgaria in 2017. The average income per capita in the region is 9249.70 BGN by 14280 BGN average for the country in 2017. The research by the creation of mathematical model calculates the impact of single growth factor - foreign and local investments - in the region in short and long term. It will define their influence on the growth and in perspective it could use their increasing for advancing development of Danube region compared with other in the country.
- Subjects
BULGARIA; ECONOMIC models; ECONOMIC expansion; ECONOMIC policy; ECONOMIC impact; FOREIGN investments; UNEMPLOYMENT
- Publication
Balkan & Near Eastern Journal of Social Sciences (BNEJSS), 2020, Vol 6, Issue 4, p56
- ISSN
2149-9314
- Publication type
Article